Temasek’s partnership with Malaysia’s privately held Langkah Bahagia Sdn Bhd is complicating the Singapore investment agency’s bid to divest its investment in Alliance Financial Group Bhd to DBS Bank Ltd.

One major bugbear to the proposed divestment plan is that the transaction will not comply with domestic rules that limit ownership by any single group in a financial institution to 20 percent, banking executives familiar with the situation said.